Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Accounting and Financial Planning for Law FirmsLJN NewslettersNewsSections

Leases Accounting Project

By William Bosco
May 02, 2014

Following their recent meetings in March, the FASB and IASB remain at odds on the key issue of how lessees should account for all leases once they are recognized on a balance sheet. The debate is over using one method (capital lease Type A accounting) to account for all leases or using two methods, which would retain the GAAP's current distinction between capital and operating leases for expense purposes. Under this approach, the former operating leases would retain straight line rent expense.

The Boards are also at odds as to whether to extend exemptions for small leases and leases of non-specialized assets, differing on the approach to lessor accounting. The Boards, however, are much closer on that topic (and are closer to a converged answer) than they are on lessee accounting. The Boards will continue to work toward a conclusion of the project, but it appears they may have important differences. We may see two standards issued that are converged for Day 1 lessee accounting ' that is that all leases are capitalized ' but not converged on subsequent accounting for lessees and the exemptions for certain small non-specialized asset leases. The next step will be to meet again, but no date was set for that meeting.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.

Protecting Innovation in the Cyber World from Patent Trolls Image

With trillions of dollars to keep watch over, the last thing we need is the distraction of costly litigation brought on by patent assertion entities (PAEs or "patent trolls"), companies that don't make any products but instead seek royalties by asserting their patents against those who do make products.